Who is affected by cuts to Medicaid?

MedicaidELCA Advocacy
Written By Solveig Muus

Why is this happening?

Right now, Congress is in discussion around the Federal budget. One big factor on the table is cuts to Medicaid, which provides healthcare to  around 80 million Americans. The proposed budget would cut $880 billion over a 10 year period. Why is this happening, who would it affect, and what can we do?

Here are some basic statistics on who receives Medicaid:

  • 36.8 million children receive Medicaid. Nationally, nearly 41% of children living in rural areas rely on Medicaid, while 38% of children in urban areas rely on Medicaid;

  • 7.2 million older adults, among them 756,000 nursing home residents;

  • 14 million rural residents; and

  • 8.4 million adults with disabilities.

As a reminder, Medicaid in Arizona is called AHCCCS (Arizona HealthCare Cost Containment System). Over 2 million Arizonans utilize AHCCS with full or partial coverage to help them meet their basic needs. LSS-SW serves many families and individuals who rely on Medicaid to meet their basic needs for healthcare and support.

Why is this happening?

Why are cuts to Medicaid being proposed?

Cuts to Medicaid are being proposed to offset plans to permanently extend tax cuts for those in a high income bracket. In order to continue to fund tax cuts, Congress must find ways to cut in other areas, which is why Medicaid is being targeted.  

Where may the cuts happen?

Cuts in enrollment could happen in several ways. Our friends at Vitalyst Health provided the below info:

One way to cut would be to decrease the “expansion population.”  This group consists of individual adults without children who earn at or below $21,597, according to the 2025 Federal Poverty Guidelines Chart. The Federal government currently matches 90 percent of the costs for these AHCCCS members in Arizona, while the state only has to kick in the remaining 10 percent. If this population is removed from eligibility in Arizona, up to 600,000 Arizonans could be cut from AHCCCS.

Another way to cut enrollment is to add work requirements. In Arizona, AHCCCS is currently seeking public comments on its upcoming works waiver request, which would require “Able-bodied adult” members to meet the following activities, or combination of activities, for at least 20 hours per week to qualify for AHCCCS: be employed; attend school; or attend an Employment Support and Development (ESD) program. The waiver also lists exemptions to the request. However, most adults on Medicaid (64%) are already working.

To read the full article through Vitalyst, click here.

What do those in favor say?

Those in favor of cuts to Medicaid say the cuts will be to reduce waste and fraud. They say that those who "really need" Medicaid will not be affected. However, there is no clear indication of what this means or how this would be carried out.

States, many of which have already strained resources, will be left to fill the gap when Federal money is cut. Many states won't be able to fill this gap, which will mean having to downsize Medicaid assistance.

Talking points from Valley Interfaith Project

  • Medicaid is at risk. At the end of February, the U.S. House of Representatives passed a budget resolution that instructs the House Energy & Commerce Committee, which oversees Medicaid, to make $880 billion in cuts. This is only possible by making drastic cuts to Medicaid.

  • Arizona's Medicaid program is known as AHCCCS and provides health insurance for 2 million people across the state. Most of this money comes from the federal government--Arizona could not make up the billions of dollars we would lose.

  • Cutting Medicaid would be catastrophic to our entire healthcare system. Hospitals would close, hundreds of thousands of jobs would be lost, wait times would increase for everyone, and people would die. 

What can you do? Here are some ways to take action

  • Lutheran Social Services of the Southwest recommends these:

    • Personal stories are very effective. If you or someone you know has benefitted from utilizing Medicaid, your story is important and impactful.  Call or email your U.S. Representative and urge him or her to vote No Cuts or Caps to Medicaid. Lutheran Services in America (LSA) put together talking points for these calls, which can be found here.

    • Cuts to Medicaid would effect how the State budgets as well, since States will have to determine how much they can cover, so making a connection with the Governor's office letting her know that you are concerned about this issue is another way to advocate. To send a communication to the Governor, click here.

    • Want to schedule a meeting but would rather not do it alone? We're here to help. Contact us about coordinating a meeting with your district rep.

  • Valley Interfaith Project (VIP) is fighting back. Here are some upcoming meetings: 

    • Thursday, March 20, 6:30 p.m., Paradise Valley United Methodist Church: first planning meeting 

    • Thursday, March 27, 6:30 p.m., Zoom: presentation from Jennifer Burns at Children's Action Alliance to answer all our questions about what's happening

    • Wednesday, April 23, 6:30 p.m.: civic academy/action to protect Medicaid. Location TBD, but mark your calendars!

    • Ongoing: research actions with hospitals, health care experts, and others to continue building our knowledge, allies, and power on this issue

Understanding Medicaid Cuts: A Lutheran Response

In current federal discussion are proposals which could reduce access to essential healthcare for millions of Americans. Including panelists from ELCA Advocacy and Lutheran Services in America and questions from participants, this recorded webinar explores implications for ourselves, our communities and our ministries – as well as ways to bring our faith-based perspectives into the process. Recorded March 6, 2025.

Please submit your questions or comments to: washingtonoffice@elca.org.

Here is a link to the recorded webinar as well as a few of the resources mentioned during the meeting/webinar:

This action alert comes from Lutheran Services in America

Urge Your Lawmakers to Protect Medicaid and Oppose Cuts and Caps

Based on recent statements and policy agendas from the Republican Majority leaders who now control both the House and the Senate with the start of the new Congress, it is clear that they are seeking deep cuts to Medicaid and other domestic programs.  Take action with us now to help prevent cuts and caps to Medicaid.  

 As health and human service providers, we know that existing challenges that already leave many people vulnerable—from affordable housing shortages to the high cost of everyday necessities—will only be exacerbated if Medicaid is cut.  Yet Senate leadership is moving forward with a plan to use deep cuts to Medicaid and other domestic programs to pay for making certain expiring estate tax and personal income tax cuts permanent.

 We are asking you to join us in urging your lawmakers to protect Medicaid and oppose any legislation that seeks to cap, cut, or block grant Medicaid.  We encourage you to personalize our message, including stories of how important Medicaid is to the work that you and your organization do, and to share this message with your colleagues and partners.

Solveig Muus
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